Basic FL
Clue: This is money you keep instead of spending.
Saving
Money you get from banks as a reward for depositing money with them
Interest
Who said "A penny saved is a penny earned?"
Benjamin Franklin
True
Give an example of a necessity/need
Food, housing, transportation, clothes
Money you earn from doing a job or work
Active Income
What is risk
The chance that you may lose money in an investment
The more risk an investment has, the more ____
reward
Saving and investing money now helps your money grow bigger
Ask your math teachers about compound interest!!
Give an example of a want
Things like video games, snacks, or movies are this type of expenses.
Who can be an investor?
Anyone can be!
Asset
Is there a 100% secure place to put money?
No, every investment method holds risk
A budget means you can't ave fun
False, a good budget should have money set aside for fun (wants)
Name the 3 major categories in a budgeting plan
Needs, Wants, and Savings
Clue: A plan for how you will spend and save your money each month.
Budget
Something that takes money from your pocket
If Mr. Clayman's investments change in value from $100 to $2000, what is his ROI? Give your answer in percents
2000%
You need to be rich to invest
False, you can start investing with as little as $100
What is an emergency fund?
A fund that is used in emergency situations or crisis situations.
Using your money to make more money
Investing
What is a ROI
Return on Investment. ROI is calculated by subtracting the cost from the sell price
Who is Warren Buffet, and what company did he run?
He is one of the best investors who ran berkshire Hathaway
You need to be rich to invest your money
False, you can start today with as little as a dollar!
What is the 50-30-20 rule?
A common budgeting rule suggests that your income shouldbe split between Needs (50%) Wants (30%) and Savings (20%)